OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 2 to 3 Higher |
| Soybean Futures: | 3 to 4 Higher |
| Soybean Meal Futures: | $1 to $2 Higher |
| Wheat Futures: | 3 to 4 Higher |
MILK:
There had been no trade overnight in milk futures until after 6 a.m. CST when some activity took place in the February Class III contract at 8 cents lower. This may indicate that increased caution will permeate the market ahead of spot trading. The last few times the block cheese price held steady for a trading period, further weakness developed. This may dominate the minds of traders again today. Market fundamentals have not changed, keeping the market in a bearish grip. Increased holiday demand for milk and dairy products should keep support under the market, but it may not result in higher prices.
CHEESE:
The steady spot cheese prices on Wednesday provided no direction for traders. More milk will be available for cheese production through the holidays as fluid milk will be diverted from school accounts to the spot market. The current inventory levels of cheese are uncertain. USDA will not release a cold storage report until Dec. 23. The inability of cheese prices to increase at this time of year increases the possibility of further weakness after the holiday season.
BUTTER:
The stability of the butter price has certainly been welcomed. However, the longer the price remains limited in strength, the greater the potential of weakness after the holiday demand slows. The Northeastern region of the country reported that butter production is stronger than usual for this time of year. The butterfat content in milk remains at record levels, and cream is readily available.
